[2018] KECA 1 (KLR)

[2018] KECA 1 (KLR)

The Court of Appeal held that, despite conflicting jurisprudence on the right of appeal under section 35 of the Arbitration Act, it would proceed to determine the appeal on its merits in the absence of a Supreme Court pronouncement and given the respondent's submission to the Court's jurisdiction. On the substantive...

Source-derived case information.

Citation
[2018] KECA 1 (KLR)
Parties
Appellant: Thika Coffee Mills Ltd; Respondent: Rwama Farmers Co-operative Society Ltd
Court
Court of Appeal
Court Station
Court of Appeal at Nairobi
Jurisdiction
Kenya
Case Number
Civil Appeal 251 of 2013
Procedural Posture
Civil Appeal / Judgment on Appeal From High Court Ruling Refusing to Set Aside Arbitral Award
Outcome
appeal dismissed
Judges
MSA Makhandia, PO Kiage, K M'Inoti
Legal Topics
Arbitration Awards, Setting Aside Award, Public Policy Exception, Scope of Reference, Fair Hearing, Admissions in Pleadings
Source Language
en
Commercial and Corporate Alternative Dispute Resolution Arbitration Awards Setting Aside Award Public Policy Exception Scope of Reference Fair Hearing Admissions in Pleadings

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Parties

Thika Coffee Mills Ltd

Appellant

Rwama Farmers Co-operative Society Ltd

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From High Court Ruling Refusing to Set Aside Arbitral Award

  1. 1 Whether the Court of Appeal has jurisdiction to entertain an appeal from a High Court decision on an application to set aside an arbitral award under section 35 of the Arbitration Act.
  2. 2 Whether the arbitral award exceeded the scope of the arbitrator's reference by awarding sums not pleaded or admitted as paid.
  3. 3 Whether the arbitral award constituted unjust enrichment and was contrary to public policy.

Ratio Decidendi

The Court of Appeal held that, despite conflicting jurisprudence on the right of appeal under section 35 of the Arbitration Act, it would proceed to determine the appeal on its merits in the absence of a Supreme Court pronouncement and given the respondent's submission to the Court's jurisdiction. On the substantive issues, the Court found that the sums in question, though not specifically pleaded, became live issues during the arbitration as both parties addressed them and evidence was adduced regarding their payment. The arbitrator and the High Court correctly found that the appellant failed to prove actual payment of the disputed sums, and the respondent was entitled to the award. The...

Court Disposition

appeal dismissed

Orders

  • The appeal is dismissed with costs to the respondent.
  • The arbitral award as adopted by the High Court stands.